LED industry competition tend to be stable expansion driven by revenue growth Sanan Optoelectronics

The evening of October 27, 2016, released "Sanan Sanan optoelectronics Au Optronics Co in 2016 third quarter report". Before the three quarter the company achieved operating income of 4 billion 486 million yuan, attributable to shareholders of listed companies net profit of 1 billion 496 million yuan, an increase of 24.55% and 3.39% respectively; the third quarter quarter revenue 1 billion 707 million yuan, attributable to shareholders of listed companies net profit of 529 million yuan, respectively, an increase of 30.32% and down 2.44%.

Expand production driven revenue growth, gross profit rebounded in the two quarter. The company expanded production capacity of MOCVD equipment successfully released, the size of a new quarter revenue up to 1 billion 707 million yuan, an increase of 30.32%; from the gross profit situation, reduce the company's gross margin in the two quarter to 36.59%, the main technology promotion is not up to expectations, the quarter gross margin level increased and reached 39.26%.

LED chip industry competition pattern tends to be stable, the company expanded the car business, broad prospects. LED chip companies after last year's substantial price cuts, many small LED chip companies have withdrawn, the competitive landscape tends to stabilize, in April and in September this year, some of the industry's leading companies to raise prices phenomenon. In addition to the production of LED chip is cut into the LED application field, its wholly-owned subsidiary of Rui photoelectric auto lamp business growing rapidly, has been widely recognized by customers, has a variety of automotive supply, subsequent business will rapidly expand, broad prospects.

Compound semiconductor business is progressing smoothly, the volume still takes time. Compound semiconductor RF power chip is in line with the development trend of the entire 5G, and the high frequency wave propagation distance is shorter, is bound to enhance the density of the base station construction, the demand for products to enhance. In the first half of the compound semiconductor business involved in the design of 263 customers, there are 19 chips through performance verification, it is likely that the three quarter there are more programs through the validation. At present, the first phase of the company's production capacity of 4000 / month, the need to further expand production capacity is likely to enter the list of major international oem.

Sanan optoelectronics will be in the fourth quarter continue to strengthen research and strictly control the production cost, improve product gross margin and profitability, to achieve steady growth in sales and profits. Overall, the company will be completed as soon as possible to complete the certification of other products, accelerate the progress of new equipment procurement, accelerate the pace of mergers and acquisitions and the implementation of the project as soon as possible, enhance the core competitiveness and profitability.

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